3.3
ECONOMIC
CHANGES

The South African economy has seen interest rates fall
over 201X. This
is advantageous for the business as the cost of
borrowing (the
interest) is less. The inflation rate is also a key
factor to consider
as rising prices will have an adverse impact on the
business. With a
high inflation rates, the expenditure of the business
will be high thus
adversely impacting on the profits of the business. On a
positive note,
the global economy is recovering from the recession,
this will
certainly be an opportunity of ExpressX Warehousing and
Distribution
Services.

3.4
SOCIAL
CHANGES

In terms of social changes, the high crime rate in South
Africa
(including the Klerksdorp region) is likely to impact on
the business
in a negative manner. As the business is going to be
storing other
people’s goods, theft will be a key factor arising from
social changes
and it needs to be abundantly taken into account.
Preventative or
security measures are likely to prove to be costly to
the business. The
measures should not be taken lightly and all efforts to
implement them
efficiently and effectively must be taken into
consideration. In
addition, the high
prevalence of the AIDS pandemic may pose a threat to the
human resource
faction of the business.

On a positive note, with regard to social changes, the
South African
Government is actively embarking on infrastructure
projects aimed at
alleviating poverty and ultimately helping disadvantaged
communities.
Creating employment has been a prime agenda for the
Government. This
will in essence create opportunities for entities such
as ExpressX
Warehousing and Distribution (Transportation) Services
to
supply more services in future as a market with greater
buying power is
on the rise.

3.5
TECHNOLOGICAL
CHANGES

Technology is changing rapidly and many South African
warehousing and
distribution players are keen on catching up with the
pace. There are
great opportunities arising from technological changes
and these
include the fact that Information Technology that
supports logistics,
warehousing and distribution is advancing at a
commendable pace.
Currently, advanced distribution and warehousing
software is available
on the market. This can assist the business in terms of
activity
management or back office operations. Integrated
software capable of
providing fully integrated invoicing, ordering,
purchasing, inventory
management, accounting commission, multi-level pricing
and warehousing
logistics is currently available. The business also has
access to light
commercial trucks for providing efficient and effective
distribution
solutions. The business can also benefit from technology
from a
marketing perspective as it can set up a business
website to market its
services on a 24/7 365 days basis.

3.6
ENVIRONMENTAL
CHANGES

In terms of environmental changes, The South African
Government is
passionate about driving initiatives that look into
avenues of
conserving and protecting the welfare of the
environment. This is
amplified by the implementation of Acts such as The
National
Conservation Act, National Waste Bill and Local
Government Waste Bill.
The business will have to be environmental conscious and
ensure that
its activities are environmental friendly. ExpressX
Warehousing and
Distribution Services will support ‘green’ causes and
will embrace this
as part of its business values.

3.7
LEGISLATIVE
CHANGES

The business will have to comply with the laws and
regulations of the
Republic of South Africa. Compliance with Acts might
prove to be a
threat to the business as opposed to an opportunity. The
business will
have to comply with various acts such as the Income Tax
Act,
Occupational Health and Safety Act, Employment Equity
Act and other
Acts, to mention a few principle ones.